LONDON, July 26 - European stocks and U.S. futures rebounded on Friday as markets stabilised after a week in which global equities have tumbled almost 2%, while the dollar regained ground against the yen ahead of U.S. inflation data.
Investors were awaiting the release of the U.S. personal consumption expenditures index for June, the Federal Reserve's preferred measure of inflation, at 1230 GMT . Investors have snapped up smaller companies that are more closely tied to the economy and affected by borrowing costs. At the same time, they have ditched popular artificial intelligence plays such as Nvidia , , helping to pull down global stocks , by 1.7% this week.
The yen has been drive higher by expectations that the Fed could cut while Japan raises rates in the coming months, as well as by suspected BOJ intervention earlier this month.
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